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St. Paul, Minn. —
(AP) Minnesota's embrace of ethanol-gasoline blends
would be taken to new heights under a bill that could clear the
Legislature as soon as Wednesday.

Two leading legislators on agriculture issues - Rep. Greg
Davids, R-Preston, and Sen. Dallas Sams, DFL-Staples - said Tuesday
they have struck a deal to boost the amount of ethanol sold in
Minnesota. The pact melds bills that comfortably passed the House
and Senate earlier this year.

The merged bill would double the percentage of the corn-based
additive in each gallon of gas beginning in 2013 if a separate
renewable fuel goal is not met.

"It gets us on the road toward lowering our dependence on
foreign oil," Davids said. "It's a great piece of legislation and
it will help the rural economy."

Currently, most Minnesotans put a 10 percent ethanol blend in
their tanks; there are cars that run on 85 percent ethanol, a fuel
dubbed E85. Soon, all diesel fuels sold in the state will contain a
small fraction of animal fats or vegetable oils, like that derived
from soybeans.

The move to a 20 percent blend, so-called E20, which would
affect most motorists, isn't a certainty.

Here's why:

-The higher threshold hinges on the total amount of ethanol or
renewable fuels consumed in Minnesota. If by the end of 2010,
ethanol makes up one-fifth of all gas sold in the state, the new
mandate wouldn't take hold.

Such a scenario would depend on E85 sales jumping considerably.
Because E85 has so much ethanol per gallon, greater use of it would
push Minnesota closer to its overall 20 percent renewable fuel
goal. There are more than 100,000 vehicles in the state that can
accommodate E85, often in government fleets.

-The federal government holds veto power. If Minnesota can't get
a waiver from the Environmental Protection Agency, the state would
stick with its current ethanol standard.

Gov. Tim Pawlenty has been pushing for expanded use of ethanol.
But a spokesman had no immediate comment on the legislative
agreement.

It is expected to get a Senate vote on Wednesday and the House
would take it up soon after.

In Minnesota, about 260 million gallons of ethanol are currently
consumed. To accommodate a 20 percent blend, ethanol plants would
have to make at least 574 million gallons of it. That would require
the cultivation of 230 million more bushels of corn, above the 1
billion bushels harvested now each year.

While it would be a boon for farmers, opponents of the higher
standard have raised concerns about it damaging vehicle engines and
other small motors. Others have complained that government is
propping up an industry that should rise or fall on its own.